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Government Considers New Logistics Entity To Transform Transport Sector


The government is looking to establish a national shipping carrier to kick-start transformation in the transport sector, particularly in the maritime and aviation industries.

According to BusinessDay, this comes as South African Airways (SAA) undergoes business rescue in the face of liquidation. The national airline joins a long list of state-owned entities (SEOs) that were either looted at the height of state capture or are in deep financial trouble.

Mbalula said in written replies to questions published in parliament last week that the government was looking into the establishment of a national shipping carrier as a means of building strategic national shipping capacity and capability.

National shipping carrier to boost economic growth 

Mbalula explained that a national shipping carrier would contribute greatly to economic growth and transformation. 

“As a maritime nation with a coastline in excess of 2 500km, which is strategically located on one of the busiest shipping routes surrounded by three oceans on the eastern, western and southern seaboards, we are steadfast on our commitment to position the oceans economy as a strategic contributor to economic stimulation and growth,” said Mbalula. 

“In recognising our contribution to the country’s efforts towards realising inclusive growth, we must prioritise the acceleration of interventions that will unlock the potential of the ocean’s economy and drive transformation in an aggressive way,” the minister added. 

Initiatives to transform transport sector 

Mbalula told parliament that his department has a number of initiatives that will allow for transformation in the transport sector and increase economic participation by those aspiring to enter the industry.

“The department will very soon reinstitute the Transport Sector B-BBEE [broad-based BEE] Charter Council which will champion the work of the previous charter council and spearhead transformation of the transport sector, particularly industries such as aviation and maritime because of being untransformed,” said Mbalula. 

“The main objectives of the charter council include the facilitation and implementation of programmes to fast-track B-BBEE in the transport sector to ensure that a favourable environment for B-BBEE to flourish exists,” added Mbalula.

Charter council to be reinstituted

The council will also ensure implementation, monitoring, and evaluation of the transport sector’s B-BBEE codes, which are “frameworks that drive the nation towards the empowerment of black people, black employees, black entrepreneurs, black women, black people living with disabilities and black youth within the sector”.

“There is a guideline booklet on business opportunities in the transport industry for B-BBEE companies. It is aimed at assisting companies, especially emerging companies and any other party interested in doing business in the transport industry, to identify business opportunities,” Mbalula said.

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